Republic of the Philippines

City of Taguig

Taguig City University

General Santos Avenue, Central Bicutan, Taguig City

MODULE 2 – FINALS
COLLEGE OF HOSPITALITY AND TOURISM MANAGEMENT
COURSE MODULE in

OPERATIONS MANAGEMENT IN THE HOSPITALITY INDUSTRY

I. LESSON 06– HOSPITALITY HUMAN RESOURCE MANAGEMENT

II. INTRODUCTION

Human resources management (HRM) is often perceived as an extra cost for

businesses; however, the opposite can be true. Regardless of the type of
business you are running, in order to successfully attract and retain good
workers, you need to have a good understanding of effective human resources
practices and implement those practices in your business. A well-planned HRM
program that is tailored to your organization and staff can actually improve your
business’s bottom line. Increasingly, employers in the hospitality sector are
recognizing the importance of, and challenges associated with, attracting and
retaining good workers and are placing human resources issues at the top of
their priority list.

Business success can never be achieved by just one person; it takes a team
– and the right team – for you and your business. So how do you find, attract,
and keep the right people to work for you and your business? You do this by
putting employees first. Some of the overall benefits of good human resources
(HR) practices include higher employee satisfaction, lower staff turnover,
superior customer service and, of course, increased profitability. In short, A
human resource department’s main goal is to implement a variety of functions
that are strategically designed to both attract and maintain an effective
workforce.

III. LEARNING OBJECTIVES

At the end of the lesson, you should able to:

LO1. Discuss the vital role of the Human Resources Department in the hotel;
LO2. Explain the functions of the HR Department; and
LO3. Enumerate the qualifications of an HR Director/ Manager

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IV. LESSON PROPER

Human Resources Department: the functional area in a hotel with the

responsibility to assist managers in other departments with human resources
concerns including recruitment, selection, orientation, training, compensation,
legal, safety and health, and a wide range of other specialized tasks.
HR: short for “Human Resources.”
Line Department: hotel divisions that are in the “chain of command” and are
directly responsible for revenues (such as front office and food and beverage)
or for property operations (such as housekeeping and maintenance and
engineering).
Line Managers: managers who work in the line (“chain of command”)
departments within a hotel.
Human Resource Functions

Most HRM initiatives fall into one of the following functions.

• Human resources planning: Through job analysis and strategic planning,

including assessment of the environment and projections for future
business, organizations can forecast short- and long-term staffing needs
and the strategic use of the human resource functions to meet those needs.
• Job analyses and job descriptions: Job analyses are used to define the
tasks and responsibilities involved in each job and to determine the
qualifications required to successfully fulfill the job requirements. Job
descriptions are the resulting documents. They provide a basis for all other
HR functions.

Job Description: a list of tasks that an employee working in a specific

position must be able to effectively perform.

Benefits of having a job description

• A new employee knows exactly what the job entails and what to expect
• It acts as a vital part of orientation program
• It acts as a basic foundation to set standards of performance against which
the performance appraisal is done.
• It is a legal document for any disputes arising out of lack of role clarification
• It protects an employee from an unreasonable superior who may like to
over burden an employee and exploit his presence on the job.
• Recruitment: Various methods are used to attract suitable applicants from
labour pools.

Stereotype: a common perception (true or untrue) about something. For

example, a specific hotel may be perceived within the community as being
an employer that is “kind” or “unkind” to its employees.

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 Unemployment Rate: the number (usually expressed as a percentage of the
total workforce) of employable persons who are out of work and looking for
jobs.

Internal Recruitment: tactics to identify and attract staff members who are
currently employed at the hotel for vacancies which represent promotions
or transfers to other positions.

External Recruitment: tactics designed to attract persons who are not

current hotel employees for positions at a property.

Tactics include: Internet job posting sites, Newspaper/media

advertisements, Student job fairs, recruiting at community schools/colleges,
“Help wanted” signs

• Selection: The selection process is used to hire the best people into the
positions for which they are most suited.

“Warm Body Syndrome”: an often-used but ineffective selection tactic which

involves hiring (almost) anyone who applies for a vacant position without
regard to their qualifications for the job.

Job Specification: a list of personal qualities necessary for successful job

performance.

Eligibility information can be gathered by way of several selection tactics:

– Application form
– Employment interview
– Employment tests
– Reference checks and recommendations
– Physical exams and drug testing

Bona fide Occupational Qualifications (BOQs):

Qualifications to perform a job which are judged reasonably necessary
to safely or
adequately perform all tasks required by the job.

• Orientation: A new employee’s initial introduction to the company provides

essential information and creates a positive first impression.

Goals of orientation:

• To reduce anxiety
• To improve morale and to reduce turnover
• To provide consistency
• To develop realistic expectations

General topics to be covered:

o Hotel overview, including mission statement, emphasis on guest service
and teamwork

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o Review of important policies and procedures
o Detailed discussions of compensation and benefits
o Safety/accident prevention concerns
o Employee/union relations
o Physical facility including tour
o Other topics of priority

Induction -the process of informing new employees about matters related

to the department in which they will work. It is a process that follows the
orientation process.

• Training and development: These functions facilitate the development of

knowledge, skills, and attitudes required for staff to perform in their current
position and/or to prepare for advancement.

New and experienced workers alike need training, including:

– Initial training
– Professional development
– Training to keep up with new and revised procedures/technology
• Compensation, benefits, and recognition: Businesses need to determine
appropriate types and levels of remuneration and incentives,
including wages, formal benefits, and perquisites (perks).

Compensation: All financial and non-financial rewards given to

management and non-management employees in return for the work they
do for the hotel.

• Salaries: pay calculated at a weekly, monthly, or annual rate rather than at

an hourly rate.
• Wages: pay calculated on an hourly basis.
• Fringe Benefits: indirect financial compensation
Must be equitable as well as being:

• Legal
• Fair/Balanced
• Cost-effective
• Reasonable (employees’ view)

Fringe Benefits can include:

• Paid leave benefits

• Unpaid leave benefits
• Life insurance benefits
• Medical care benefits
• Dental care
• Retirement benefits
• Performance management: Providing feedback to employees on their
work performance encourages and supports improvement. Also included in
performance management is coaching. Progressive discipline is a

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 separate process intended as a formal corrective process to address
unsatisfactory behavior or job performance.
• Termination: Businesses must manage the process of employees leaving
the organization due to just cause or termination being the final stage of
progressive discipline.

Human Resource Priorities

• Recruit, select, motivate, and retain staff members

• Orientation and supervisory training programs
• Develop and communicate human resources policies
• Interpret, implement, and enforce the body of laws and regulations
• Maintain appropriate standards of work life quality and ethical business
policies and practices

Legal Aspects of Human Resources

• Employee Selection
• Employer-Employee Relationships
• Other Workplace Laws

Employer-Employee Relationships Employment Agreement:

A document specifying the terms of the relationship between the employer and
employee, which indicates rights/obligations of both parties.

Other Workplace Laws

• Sexual Harassment: Zero Tolerance: the total absence of workplace

behavior that is objectionable from the perspectives of discrimination or
harassment.
• Family and Medical Leave Act: Hotels that employ 50 or more staff members
are required to provide up to 12 weeks of leave to an employee if the time
is needed for the birth, adoption, or foster care of a child. Also applies to
serious illness of an employee or immediate family.
• Compensation Minimum Wage: the lowest amount of compensation that an
employer may pay to an employee.
Overtime: the number of hours of work after which an employee must
receive a premium pay

Night Differential/ Hazard/ and other pays

• Taxes Social Security: retirement benefits paid to primary workers,

survivor’s benefits and benefits for the retiree’s spouse and children, and
disability payments based upon contributions paid by the retiree and his/her
employer(s).
Medicare: hospital and medical insurance received by persons over 65
years of age who are eligible for Social Security benefits.
Income Tax

• Employee Performance (Performance appraisal)

Employee Evaluation (Performance Appraisal)
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 Discipline-Progressive discipline • (to help employees to improve)
Termination
• OSHA and Employee Health and Safety
Issues that affect health/wellness of employees:
– Programs to help employees cope with stress
– Concerns about violence in the workplace
– Information about HIV
– Information relative to cumulative trauma disorders
Safety Hazards: conditions in the workplace that can cause immediate
harm. Examples include unsafe equipment, accidents and the improper use
of chemicals.
Health Hazards: aspects of the workplace that can lead to a decline in an
employee’s health. Examples include stressful working conditions and
exposure to toxic chemicals.
• Data-Privacy Act

Human Resources Challenges:

Strategies for reducing turnover rates:
– Helping motivated employees become more proficient
–Providing professional development opportunities
– Cultural diversity
–Quality improvement

Job Description for Human Resources Manager

Position Title: Human Resources Manager / HR Director

Reports To: General Manager / Hotel Owner

Position Summary:
The Human Resources head oversee the daily operation of the Human
Resources office. Responsible for areas of Recruiting, Employee Relations,
Benefits, Events, Workers Compensation and other employee-related tasks.

Additionally responsible for short and long term planning of all the HR
related functions like workforce planning, recruitment, staffing strategies, wage
and salary administration, associate and labor relations, benefits, workforce
training and development etc.

HR Manager Duties and Responsibilities:

To ensure that the company HR operational policies and processes are
adhered to and continually improved.

• To assist in all activities concerning the sourcing & recruitment of staff,

performance management, staff discipline and HR administration.
• To coordinate all matters of employee work permits and visas.
• To coordinate and / or conduct departmental training and conduct new hire
hotel orientation program.
• Implement corporate policies and procedures on compensation, incentive,
bonus and benefits.

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• Continually assesses employee morale by analyzing absenteeism and
turnover records, lateness and resignations.
• Coordinate and oversee all matters related to staff accommodation,
facilities, and transport.
• Coordinates, controls and inspects employees accommodation, staff
canteen, rest rooms etc. ensuring it is of the highest possible standard of
cleanliness and comfort.
• Coordinate employee wellness and safety programs.
• Conduct needs analysis, develop, implement, and monitor training
programs and materials.
• Encourages a good standard of employee conduct and behavior and
coordinates disciplinary procedure as and when necessary.
• Ensures appraisals are carried out for every employee every 12 months or
as per hotels management policy, and also reviews all appraisals and
follows up on development needs, if required.
• Assist in communication of key messages to all staff.
• Assist in recruitment and hiring of all employee.
• Ability to remain calm and courteous in demanding situations.
• Assists other department heads / HOD's in the formulation of HR policies
and procedures for their respective departments.
• Assists with and ensures that all procedures concerning promotion, transfer
and staff resignation is carried on within Company policy and also within
legal boundaries.
• Assists in developing and conducting management training on a variety of
leadership and HR topics.
• Assists in overseeing preparation of reports required by government
agencies.
• Oversee Workers Compensation programs, ensuring claims and reports are
submitted in a timely basis.
• Support operational efforts through proper staffing and training of
associates.
• Assist with planning, coordinating and executing employee activities and
events, including monthly staff meeting, food festivals, annual picnic,
holiday party, Wellness Fair, farewell party, community services etc.
• Issue staff or training experience and conduct certificates.
• Assists in the administration of the Hotel's social and staff benefit programs
Eg: Employee of the Month, Leader of the Month, and other staff incentives.
• Provide guidance to the leadership team regarding employee morale,
employee relations, coaching, counselling and discipline.
• Promote employee communication activities and channels, to encourage
and enable feedback from staff.
• Maintain a positive relationship with staff representatives and ensure any
employee grievances are monitored and resolved.
• Responsible for all back office and administration tasks of the department.

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 • Oversee the management of the recruiting process including position
management, advertising, working with community agencies.
• Develops and maintains confidential departmental staff and associated files,
documents, pay scale details and/or other important databases.

Prerequisites:

• Have a strong background in employment, employee relations, benefits,

wages and salary, employee training, accident prevention, and government
regulations and policies.
• Strong written communication skills required with an understanding and
ability to work in a multi-cultural environment.

Education:

• Four-year college degree in Human Resources or Bachelor's degree or

Master's Degree education. Well versed in HR and Payroll Management
Systems (HRIS Systems). And Excellent skills in Microsoft Office, HRIS
system, Applicant Tracking system, and online recruiting resources.

Experience:

• Five years Human Resources management experience required preferably

in the hospitality industry and minimum experience of 1 to 2 year in the
same position at 4 Star or 5 Star Hotel.

V. SUMMARY OF THE LESSON

Event planners, bed and breakfast operators, caterers and bistro owners
run hospitality establishments that are likely too small to justify hiring a full-time
human resources manager. Even non-franchised restaurants and motels might
not have an in-house HR expert to handle employment issues. But the risks to
small businesses in the hospitality industry, from disgruntled patrons to high
employee turnover, can be costly and warrant help from an HR professional.

Industry

The hospitality industry's most critical problems are employment-related.

The International Society of Hospitality Consultants cites labor and skills
shortages as among the industry's top 10 challenges. The ISHC report, "Top
Ten Issues in the Hospitality Industry for 2007," also notes that more people
are exiting than entering the hospitality workforce, leaving hotels, restaurants
and other hospitality businesses short-handed. The report identifies
substandard wages as a deterrent to attracting and retaining skilled workers.
Long hours, including nights and weekends, make jobs in the industry
undesirable career choices for college-educated Gen-Xers, Gen-Yers and

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millennials, who want more flexibility and higher-quality work opportunities. A
lack of focus on employee satisfaction and training also has hurt the industry.

Recruiting

Skill gaps and worker shortages are universal employment problems that
HR can't resolve alone, but highly skilled recruiters can help establishments
select the quality of housekeepers, wait staff, chefs or bartenders they need.
Recruiters can hire guest workers for seasonal employment under the H-2B
visa program to help rectify shortages, according to the ISHC. Also, HR
routinely runs background checks on job candidates. This practice might help
reduce the high theft rate of wine, food and equipment in the industry, which
Philip Lye, director of Biz Momentum Pty Ltd., describes in his 2007 article,
"Human Resource Issues in the Hospitality Industry" for "Hotel, Travel and
Hospitality News." He also describes a lack of written job descriptions as an
industry problem. HR can ensure that every position is described in detail so
that new hires and veteran workers are clear about their duties and
responsibilities.

Retention

The hospitality industry is expected to grow by 17 percent through 2014,

based on U.S. Bureau of Labor Statistics. This growth is above the 14 percent
average for all other industries. But high turnover remains a problem for the
hospitality industry. HR can propose incentives to increase retention, such as
discounts on vendors' goods and services or employee recognition programs.
The ISHC recommends in-house professional development programs that
present hospitality jobs as viable careers. This enables recruiters to show
veterans and new hires how successful people in the industry have advanced.

Compensation

HR helps businesses in the labor-intensive hospitality industry set wages

and salaries based on regional market rates. Hospitality employees earn much
of their extra income through tips. HR's payroll knowledge helps employers
handle tips as required under the federal tax code. According to the ISHC,
offering workers shared cash bonuses for raising productivity has been
successful in this labor-intensive industry.

Liability

An HR manager or consultant ensures that businesses understand and

abide by state and federal employment laws. Noncompliant employers risk
facing crippling penalties, fines or lawsuits. As public places where jobs are
often hazardous, restaurants, hotels and hospitality establishments in general
must follow safety codes. HR sees that businesses meet Occupational Safety
and Health Administration standards. Lye reports in his article that sexual
misconduct is up in the industry. HR investigates misconduct claims and
recommends disciplinary action or dismissal, if necessary. Many employees in
the industry's vastly diverse workforce belong to a protected class under the
1994 Civil Rights Act. HR drafts zero-tolerance policies on discrimination and

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 harassment, and helps managers and employees understand their rights and
obligations under the law.

Labor

Hospitality workers are often union members. HR sees that employers

comply with the National Labor Relations Act. The act prevents employers from
barring workers from joining unions or taking part in union activities while off
duty. HR has a chief role in union-contract negotiations between bargaining unit
leaders and management over pay, benefits, hours and working conditions.

VI. SELF-PROGRESS TEST/ACTIVITY

Essay:

1. Discuss the role of the Human Resources Department in the hotel

2. Explain the different functions of the HR department

VII. ANSWER TO SELF-PROGRESS TEST/COMMENTS

The instructor will provide a set of rubrics in marking the students’ work. Pls
refer to the course syllabus.

VIII. SUPPLEMENTARY READINGS/MATERIALS

https://www.youtube.com/watch?v=2yxI2tRVzbs. 5-Star Luxury Hotel HR

Manager on Human Resources
https://www.youtube.com/watch?v=9MWFkH4xb3U. An Animated Introduction
to the Key HR Functions

IX. REFERENCES

https://opentextbc.ca/humanresourcesinfoodservices/part/human-resources-
management-in-hospitality/. Human Resources Management in the Hospitality
Sector
https://www.slideshare.net/PatCabangis09/chapter-3-human-resources-
department?from_action=save. Human Resources Department
https://smallbusiness.chron.com/role-human-resources-department-
hospitality-organization-71891.html. The Role of the Human Resources
Department in a Hospitality Organization

Chibili, Michael N. et al. (2016). Modern Hotel Operations Management.

London : Routledge

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